[In Trouble] Isaiah,an Issuer of Stock,may Be in Trouble

[In Trouble] Isaiah,an issuer of stock,may be in trouble.He sold stock in a new health club venture before the effective date of registration.He did so because he was in financial trouble due to other projects.Isaiah thought that the health club venture would be such a success that he would never get caught.Unfortunately,he was wrong.The health club venture has significant problems,and investors are looking for some way to hold Isaiah responsible.Another problem Isaiah has is that he inflated information regarding the prospects of the health club in the prospectus.Rafal,a new lawyer,told Isaiah that as far as he knew,Isaiah could be fined for violations under the Securities Act of 1933,but he could not be sent to prison.Isaiah told Rafal that was good news and that no one should feel sorry for the investors because none of them made any effort to check on information contained in the prospectus or to investigate the future profitability of the health club venture.Isaiah says that he plans to rely on the due diligence defense.Isaiah also asks Rafal if he is aware of any other defenses.Isaiah says that once before he was held liable for a violation of the Securities Act of 1933,and he does not want to be in trouble again.
-Is Rafal correct in that the SEC would have no authority to send Isaiah to prison?

A) Rafal is incorrect because the SEC criminally prosecutes some violators although the action would only be a misdemeanor.
B) Rafal is correct because there are no criminal penalties for violating the 1933 act.
C) Rafal is incorrect because the SEC criminally prosecutes some violators,and a violation of the act is considered a felony.
D) Rafal is correct in that the SEC itself would not send Isaiah to prison,but the SEC could recommend criminal action to the Department of Justice resulting in imprisonment for up to five years for a violation.
E) Rafal is correct in that the SEC itself would not send Isaiah to prison,but the SEC could recommend criminal action to the Federal Bureau of Investigation resulting in imprisonment for up to ten years for a violation.